The market for virtual reality technology was valued at $980.4 million
in 2014 and is projected to reach $15,899.1 million by 2020, at a CAGR
of 63.18% between and 2020.

The virtual reality technology market is growing considerably due to the
technological advancements in virtual reality devices such as HMDs and
the increasing demand for virtual reality in the gaming and
entertainment applications. The market for HMDs is growing gradually
with their increasing use in the gaming application. Many companies such
as Oculus VR, Inc. (U.S.), Samsung Electronics Co., Ltd (Korea), Zeiss
AG (Germany) are developing HMD devices that are technologically
advanced and also cost-effective. Apart from HMDs, gesture tracking
devices, projectors, and display walls are also used in the virtual
reality market. These devices are used in various applications for
simulation and training purposes. Virtual reality is categorized into
two major technologies, namely, semi-immersive and fully immersive.

This segmentation is based on the level of the immersion into the
virtual environment experienced by the user. The fully-immersive
technology offers a complete virtual experience, and is therefore
preferred by users. Based on the component of the technology, this
market is segmented on the basis of hardware and software components.
Hardware components include electronics and semiconductor components,
sensors, and displays. Software plays a significant role in the virtual
reality market as the quality of the virtual experience depends on the
software content.